May 092019
 

Reacting to the latest announcement of the Ornua April PPI increasing to 31.6cpl, ICMSA’s Ger Quain said that the price rise fully vindicated his recent comments in which he expressed the view that the market is in a stronger position than was being reported to farmer-suppliers by their milk purchasers and Co-ops. Mr. Quain noted the speed with which some Co-ops and milk purchasers had reduced their price when the Index fell last month, and he said that ICMSA expected to see the same speed applied to a price rise this month.  Wholesale markets continue to supply positive trends with the GDT auction increasing once again in its first of two auctions in May. Putting this to context, Mr. Quain pointed out that the GDT has not yet had a negative auction in 2019, with 11 consecutive positives adjustments. European wholesale markets are also suggesting these positive trends with the current Dutch quotations at 31.7cpl for the Butter/SMP mix and almost 35cpl for WMP.

“Milk processors right across the continent are paying a higher price for their farmers’ milk with the three major Irish companies languishing in the ‘relegation zone’ of the LTO European Milk league table. Irish dairy farmers and their representatives are asking why Irish product is not being sold at these prices given that we are told that the “return from the market are below the current prices paid to farmers”.  The obvious reply to that point is that in the Ornua PPI we have a basket of Irish goods being sold for 31.6cpl and this figure is itself in excess of what some processors are paying their member suppliers”, said Mr. Quain.

“ICMSA is clearly saying that April milk prices must – at a minimum – meet the PPI or the Co-ops and purchasers will face increasing disillusionment and anger from their farmer-suppliers.

Ends    9 May 2019

Ger Quain, 086-3623041

Chairperson, ICMSA Dairy Committee

Or

Cathal MacCarthy, 087-6168758

ICMSA Press Office